a FBC (Pty) manufactures one product, Product X. You were given the following information for period 4. Product X has a standard material cost as follows: 10 kilograms of material Y at P10 per kg = P100 per unit of X. During period 4; 1, 000 units of X were manufactured, using 11, 700 kg of material which cost P98, 631. The standard labour cost of product X is as follows: 2 hours of grade Z labour at P10 per hour = P20 per unit of product X. During period 4; 1, 000 units of product X were made, and the labour cost of grade Z labour was P17, 825 for 2, 300 hours of work. Degree July - December Required: Calculate the following variances: a. Material price variance b. Material usage variance The labour rate variance d. The labour efficiency variance C. Botswana Open University Supplementary/Special Assignment BMA721 - Business Management Accounting (4 marks) (4 marks) (4 marks) (4 marks)
a FBC (Pty) manufactures one product, Product X. You were given the following information for period 4. Product X has a standard material cost as follows: 10 kilograms of material Y at P10 per kg = P100 per unit of X. During period 4; 1, 000 units of X were manufactured, using 11, 700 kg of material which cost P98, 631. The standard labour cost of product X is as follows: 2 hours of grade Z labour at P10 per hour = P20 per unit of product X. During period 4; 1, 000 units of product X were made, and the labour cost of grade Z labour was P17, 825 for 2, 300 hours of work. Degree July - December Required: Calculate the following variances: a. Material price variance b. Material usage variance The labour rate variance d. The labour efficiency variance C. Botswana Open University Supplementary/Special Assignment BMA721 - Business Management Accounting (4 marks) (4 marks) (4 marks) (4 marks)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:a
FBC (Pty) manufactures one product, Product X. You were given the following information
for period 4.
Product X has a standard material cost as follows:
10 kilograms of material Y at P10 per kg = P100 per unit of X.
During period 4; 1, 000 units of X were manufactured, using 11, 700 kg of material
which cost P98, 631.
The standard labour cost of product X is as follows:
2 hours of grade Z labour at P10 per hour = P20 per unit of product X.
During period 4; 1, 000 units of product X were made, and the labour cost of grade Z
labour was P17, 825 for 2, 300 hours of work.
Transcribed Image Text:Degree
July - December
Required:
Calculate the following variances:
a. Material price variance
b.
Material usage variance
The labour rate variance
d. The labour efficiency variance
C.
Botswana Open
University
Supplementary/Special Assignment
BMA721 - Business Management Accounting
(4 marks)
(4 marks)
(4 marks)
(4 marks)
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